Pennsylvania based Atlantic Coal has announced that it has made a further draw down on its existing standby equity distribution agreement and has entered into an equity swap agreement (SEDA). The move comes as the company looks to finance export orders to China.
The US anthracite coal mining company said that the agreements would immediately provide £800,000 of additional funds before charges and a further £650,000 in the period to 31 December 2014. The company said that a significant proportion of these funds would be used to increase stocks of anthracite at the Stockton mine in order to satisfy bulk orders from China resulting from previously announced sales agreements.
Under the terms of the SEDA with YA Global Master SPV Ltd (Yorkville), Atlantic Coal has issued almost 690 million new ordinary shares of 0.07 pence each to Yorkville for an aggregate consideration of £1.45 million before charges. Atlantic Coal said that application had been made to admit the New Shares to trading on AIM, which is anticipated to take place on or around 6 December 2013.
In addition, Atlantic Coal has entered into an equity swap agreement with Yorkville which enables the company to retain much of the economic interest in the swap shares over the swap period. Atlantic Coal will pay Yorkville £650,000 in monthly installments over ten months commencing 1 February 2014.
Managing director of Atlantic Coal, Steve Best, said: “I am delighted that Yorkville are demonstrating their confidence in the company’s management and the steps that we are taking to develop our business.”
Adapted from press release by Sam Dodson
Read the article online at: https://www.worldcoal.com/coal/03122013/financial_restructurin_at_atlantic_coal_316/